CNI, NIFRA reach understanding to build, operate industrial zones

KATHMANDU: Confederation of Nepalese Industries (CNI) and Nepal Infrastructure Bank (NIFRA) have reached an understanding to construct and operate industrial zones.

A memorandum of understanding (MoU) was signed to build and manage industrial zones announced by the Government of Nepal under the public-private partnership (PPP) model. The agreement was signed by CNI Director General Ghanashyam Ojha and NIFRA Assistant Chief Executive Officer Surya Bahadur Tamang in the presence of Er. Padam Oli, General Manager of Industrial Zone Management.

Under the understanding, priority has been given to the construction and operation of Shaktikhor Industrial Zone in Chitwan. CNI and NIFRA have also agreed to cooperate on the construction and operation of Mayurdhap Industrial Zone in Hetauda, and Motipur Industrial Zone in Rupandehi. CNI initiated the understanding with NIFRA following the government’s announcement to allow the private sector to build and manage industrial zones through PPPs.

Following the agreement, a joint proposal and request will be made to the government to allow the private sector to build and operate industrial zones under the PPP model.

On the occasion, CNI President Birendra Raj Pandey said the initial work for industrial zone development has begun through the understanding with NIFRA and described the partnership as 'very significant.' NIFRA Chief Executive Officer Krishna Bahadur Adhikari said NIFRA views the understanding as a starting point and noted that projects can be advanced under the PPP model in collaboration with the CNI.

Industrial Zone Management General Manager Oli said the understanding sends a positive message as the government has declared it will involve the private sector in industrial zone construction and operation under the PPP model.

The event was attended by CNI past president Vishnu Kumar Agarwal; Vice President Gokul Bhandari; Chitwan Association of Industries (CAI) President Madan Ghimire; Confederation of Bagmati Province Industries and CAI past president Bheshraj Duwadi; CNI's Industry Committee Chair Rahul Agarwal; Co-Chair Guru Adhikari; CNI's Infrastructure Committee Chair Ram Krishna Khatiwada; and NIFRA deputy chief investment officer Rabin Shrestha, among others.